Paytm Reports First Core Profit Since 2021 IPO
Paytm, the Indian digital payments titan, has reported its first core profit since its 2021 IPO. The company's parent, One97 Communications Ltd., remains the largest shareholder.
In the first quarter of FY26 (April to June 2025), Paytm's operating revenue grew by 28% year-on-year to Rs 1,918 crore. This growth was driven by a 38% increase in net payment revenues, which reached Rs 529 crore. This was supported by an expanded base of subscription-based merchant devices.
The company's expenses declined by 19% year-on-year to Rs 2,016 crore, with significant reductions in marketing and employee costs. This helped Paytm achieve an Ebitda of Rs 72 crore, turning around from Ebitda losses in the prior two quarters. Total revenue for the quarter reached Rs 2,159 crore, including other income.
Paytm's contribution profit surged by 52% to Rs 1,151 crore, with the contribution margin expanding to 60%. The financial services vertical posted revenue of Rs 561 crore, double the figure from a year earlier, facilitating services for 5.6 lakh financial services customers.
One97 Communications Ltd., Paytm's parent company, reported a net profit of Rs 123 crore in Q1FY26, reversing a Rs 840 crore loss in the same period last year. This turnaround is a significant milestone for the company, marking its first core profit since its IPO.
